Proposal for special mechanisms to develop the state economy with breakthrough efficiency

On the afternoon of April 7, Deputy Minister of Justice Nguyen Thanh Tu chaired the appraisal council for a draft Government Resolution on a number of special mechanisms and policies to develop the state economy. The draft resolution is intended to specify three special policy groups for content that is important, new, and breakthrough for developing the state economy.

Key special incentives for leading state-owned enterprises

The draft resolution includes incentives for strong, large-scale state-owned enterprises that take a leading role in key and strategic sectors, with applicable incentive regimes.

• Use of privatization and state divestment proceeds: state-owned enterprises may use the entire proceeds from privatization and state divestment to increase charter capital.
• Bonus fund from excess profits: enterprises may allocate up to 10% of profits exceeding the plan from the annual post-tax undistributed profits to form a bonus fund.

Incentives tied to science, technology, innovation, digital transformation, and green transition

State-owned enterprises investing in science and technology development, innovation, digital transformation, and the green transition will also be eligible for incentives.

Use of the Enterprise’s Science and Technology Development Fund

• Enterprises are allowed to actively use the Enterprise’s Science and Technology Development Fund (“Fund”) to invest in machinery, equipment, laboratories, and data centers that directly support modernization of production lines and digital transformation.
• In coordination with the State (through the National Fund for Science and Technology Development – NAFOSTED), enterprises may implement co-financing mechanisms for green technology projects and large-scale, high-diffusion technology.

Reinvestment, venture capital participation, and risk treatment

• Enterprises may retain all or part of legally generated profits to reinvest in the Fund, ensuring transparency, full accounting, and legal accountability.
• Enterprises may participate in forming or linking to venture capital funds.
• Enterprises may be exempt from liability for objective risks in cases where the full decision-making process, risk management, transparency, and legality have been followed.

Import and tax incentives for technology-related equipment

• State-owned enterprises may be exempt from or receive reduced import duties and value-added tax for machinery, equipment, and components that are inseparable from technology transfer contracts or merger and acquisition activities.

Use of intellectual property rights in partnerships

• Intellectual property rights to technology may be used to contribute to the establishment of new enterprises or joint ventures with private partners to commercialize products.

Appraisal council feedback: gaps in the dossier and jurisdictional concerns

During the appraisal council session, many members said the draft resolution dossier remained somewhat sparse and did not clearly address urgent content. They noted that some provisions were merely listed without explaining how they differ from existing law or why different rules are needed. Members also indicated that much of the content falls outside the Parliament’s jurisdiction.

Next steps

In concluding remarks, Deputy Minister Nguyen Thanh Tu affirmed the necessity of enacting the Resolution to fully implement Resolution No. 79-NQ/TW dated January 6, 2026, of the Politburo on developing the state economy. However, he said the scope of regulation was not clear and lacked focus, and that the contents in the draft resolution largely fall within the Government’s remit. He proposed that the drafting agency refine the dossier and re-submit for appraisal as soon as possible.